Netflix (NFLX) PT Raised to $80 at Guggenheim

Guggenheim analyst Michael Morris raised the price target on Netflix (NASDAQ: NFLX) to $80.00 (from $75.00) while maintaining a Buy rating.

The analyst commented: "We maintain our BUY rating ahead of 3Q26 results despite continued investor concern particularly focused on revenue trajectory and content slate. With shares currently at 22x our 2026 EPS estimate (in line with the broader market), and a 25% discount to Alphabet and Meta on 2027, we see an attractive price for sustainable core growth and potential return on incremental initiatives. Looking toward 3Q results, we see three key topics with the greatest potential impact on sentiment: 1) Core revenue pacing and ARM outlook in the face of challenging content comps and no scheduled engagement or membership update (we look for UCAN FX-neutral growth above the 2Q pace and further narrowing of the ad-tier ARM gap), 2) Evidence that platform expansion (podcasts, short form, games, distribution partnerships) is showing incrementality (specifically looking for additional information on TF1 partnership progress and applicability to further markets), and 3) outlook for content investment allocation or trajectory change given that management does not plan to "take a pause on margin expansion to spend more on content." Our analysis of Apptopia download trends is within. On an operating expense basis, more specificity on the technology spend taper from the 22% 2Q growth could support confidence in EPS expansion in 2027. Our 3Q estimates are unchanged at $12.9bn revenue and $0.82 EPS. We update our 12-month price target to $80 from our prior $75 on ~21x our 2027 EPS estimate."

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